Minnesota Foreclosure Prevention Options

The Minnesota Home Ownership Center publishes a regular newsletter on foreclosure prevention and I wanted to share the latest version with you:


June 24, 2008
Foreclosure Prevention Resources Newsletter

Legislative Update on Foreclosures
New legislation provides early notice of available help for distressed homeowners  Last month, the Governor signed a bill that ensures distressed homeowners will learn of available help before it is too late. The new law requires lenders to provide homeowners with information about availability of non-profit foreclosure counseling agencies before starting the foreclosure process. It also requires the lenders to provide local counseling agencies with the contact information for borrowers entering foreclosure, which will allow counselors to reach out to distressed homeowners. Prior to this legislation, homeowners were notified about foreclosure counseling services when given notice of the Sheriff&r squo;s Sale – a time in which few option are left for most homeowners.  Legislation also changes information given to homeowners with along with the Sheriff’s sale notice. New language encourages the person to contact a foreclosure prevention counselor for help in answering questions, getting advice, and creating a plan for their situation.  The revised notice also gives additional information about the foreclosure process, including that the occupant does not need to move at the time of the Sheriff’s sale.  The new law applies to properties with one to four units, one of which is owner-occupied.  

Workshops for Homeowners
Free, confidential foreclosure informationThe Minnesota Home Ownership Center continues to offer free workshops for homeowners who are worried about making upcoming mortgage payments, are already facing foreclosure or for anyone interested in learning more about foreclosure. These are open-house events. Participants are encouraged to come any time that is convenient during the workshop hours. The workshop will provide information on what happens during foreclosures, homeowners’ rights, and solutions for long-term housing needs. Participants will be able to ask questions and get free advice – confidentially – from mortgage lending and foreclosure specialists. No RSVP is needed. For more information call the Minnesota Home Ownership Center at (651) 659-9336.  Upcoming workshops:

  • Duluth– Tuesday, July 15th
       First Lutheran Church
       1100 East Superior Street
       4:30 to 7:30pm 
  •  Minneapolis – Tuesday, August 5th
       Park Avenue United Methodist Church
       3400 Park Avenue South

       4:30 to 7:30pm 
  •  St. Cloud – Tuesday, August 19th
       St. Cloud Civic Center – Opportunity Suite
       10 South Fourth Avenue
       4:30 to 7:30pm 

 In addition there are a number of workshops being held in Hennepin County at local libraries, and other partner organizations are also holding events.  For additional information, visit www.hocmn.org/HomeownerResources.cfm. If you would like to receive an electronic version of a flyer you can use to advertise these workshops to your clients, feel free to contact Ed Nelson at the MN Home Ownership Center.  

Workshops for Professionals
Information and Referral Workshops

The Minnesota Home Ownership Center is offering a series of free training workshops to provide information on how to help distressed homeowners. The trainings will provide an overview of the foreclosure process, where to refer homeowners and how to prepare them to talk with a housing counselor or loan servicer. The training is specifically designed for staff from public, private, and non-profit organizations that come in contact with distressed homeowners – but who do not normally work with mortgage foreclosure as part of their job. Upcoming training workshops: Shoreview– June 26th, 9:00 – 10:30amShoreview City Council ChambersFor more information or to RSVP for this free workshop visit http://shoreviewtrainingworkshop.eventbrite.com/  

St. Paul – July 16th,  10:30am – NoonRondo Community Outreach LibraryFor more information or to RSVP for this free workshop visit http://www.rondotrainingworkshop.eventbrite.com/  

Minneapolis – July 31st, 9:00 – 10:30amEspecially For Churches and Faith-Based Initiatives Park Avenue United Methodist ChurchFor more information or to RSVP for this free workshop visit http://parkaveumctrainingworkshop.eventbrite.com/ 


  1. John Tancabel says

    Unfortunately it is already too late for most “distressed homeowners” to learn of “available help before it is too late.” Help in the form of counseling is much too late. The government regulators are supposed to act as policemen protecting consumers from predatory lenders. Our regulators failed. In this instance, government regulators are acting as undertakers, showing up when the bodies are all room temperature. I have met with all too many married couples – often both on anti-depressants. The government should not have allowed these hyper-complex loans to be peddled. If Merill Lynch and Morgan Stanley could not assess the risk associated with ARM loans (as evidenced by the billions in losses they have sustained), how could an the busdrivers, clerks and teachers on main street be expected to weigh the risk? What are the great benefits of counseling? Inform them of the exact date they will be evicted. Tell them to purchase several rolling suitcases from Target.

    Tell them the truth: You were screwed. Our government failed to reign in the greed of lenders, and Wall Street because they were both making huge campaign contributions. The excesses went on too long. If your loan is in a CDO, the likelihood of working out a modificiation agreement is very small. The government will bail out lenders — and thereby protect lenders (who pretend to worship at the altar of the free market) from the consequences (losses) of their bad decisions. They people – however – will continue to twist in the wind. It is all very sad. Many wonderful innocent people were harmed. This “self inflicted wound” was altogether avoidable. We will be dealing with the carnage for years.